QUESTION 1 - Chapter 5 (30 marks)

The gross domestic product (GDP) is the most watched of all economic indicators contained in Canada's national accounts. Visit the Statistics Canada website www.statcan.gc.ca. Locate in Canada's Economic Accounts, the summary tables for the economic series mentioned in parts (a) and (b) below; and then answer parts (c), (d), and (e).

[5 marks] Find tables for gross domestic product Expenditure Based and Income Based, annual, (Separately), at market prices or Current Prices for the years 2016 through 2020. Download and attach the data table at the end of your answers to this question. (Do NOT provide the link to the table, you will get a zero for providing the link and not attaching the actual table). (This is nominal GDP table also known as GDP at market prices)

[2 marks] Find the Real Gross Domestic Product (Real GDP), Expenditure-Based, annual, at 2012 constant prices, for the years 2016 through 2020. Download and attach the data table at the end of your answers to this question. (Providing the link to the data table will get you a grade of zero)

[5 marks] What trend do you observe in GDP at market prices (in the data that you found in a)? What trend do you observe in GDP at constant prices (in the data that you found in b)? How and why do the two series differ? Explain your answer. To show the trend, a line graph is best (you can draw it in Word or Excel) Attach the graphs directly within the question.

[5 marks] Define the GDP Deflator and using the data tables for nominal GDP (market prices) and for real GDP (constant prices), calculate the GDP deflator for each year (2016-2020). Present the data in a table for each year. Show all your work.

[5 marks] For the year 2020, calculate the values of each of the four components of GDP at market prices (Expenditure based): consumption (C), investment (I), government purchases (G), and net exports (NX). Show and explain all your calculations. Make sure to include the sub-components that are relevant to each of the four components only. It's ideal to do this in MS Excel to do the calculation easily.

[8 marks] Find the latest release about real GDP on Statistics Canada's website (3rd quarter of 2021). Explain how real GDP has changed during the 3rd quarter and what factors contributed towards the change. Provide all the relevant details including the impact of COVID.